Tycoons urged to take more burdens
Top 30 conglomerates to hire 124,000 new employees this year
By Kang Hyun-kyung
President Lee Myung-bak Wednesday asked business tycoons to play a greater role in making the capitalist system benefit all people during a gathering in downtown Seoul Monday.
His request comes amid allegations that an unbridled free market economy has contributed to deepening social inequalities and widening the income gap between haves and have-nots.
At a luncheon with the leaders of 30 large businesses, Lee called on them to shoulder more social burdens, saying without their help the nation will be unable to achieve mutually-beneficial growth.
“There are several challenges facing the nation, and they won’t be overcome with the government’s efforts alone. Businesses need to do more,” he was quoted as saying.
The corporate executive-turned-President stressed that capitalism won’t be sustainable unless a win-win culture is set in place in the community.
Asking for anonymity, an official, who was at the closed-door gathering, told reporters that the overall atmosphere was “tense.” His remarks were construed as meaning that the tycoons felt pressure over Lee’s requests.
Business leaders, including Samsung Electronics Chairman Lee Kun-hee, were quoted as committing to shoulder more burdens to join the drive. But it remains to be seen whether they will fulfill their commitments.
Lee had the meeting to explain what he called “ecosystemic” growth in detail and ask them to join hands in a bid to fight the negative fallouts of a free market economy.
At the gathering, the Federation of Korean Industry (FKI), on behalf of 30 business giants, presented an action plan on the roles of businesses to help achieve ecosystemic growth.
Under the plan, the country’s 30 largest conglomerates will hire a record-high 124,000 new employees combined, including 35,000 high school graduates, in the second half of the year.
Each company unveiled a tailored plan. Daewoo Shipbuilding and Marine Engineering, announced it will enhance equal opportunities for high school graduates in employment. It plans to hire 100 high school graduates to train them to be engineers.
Samsung promised early payments for its business partners, mostly small- and medium-sized businesses struggling from a lack of financial resources.
Rep. Chung Mong-joon of the ruling Grand National Party, a potential presidential bidder, announced a plan to establish a charity foundation by underwriting 200 billion won ($187 million). Chung, a son of Hyundai Group founder Chung Ju-young, holds the largest stake in Hyundai Heavy Industries.
Separately, Chung Mong-koo, chairman of Hyundai Motor, promised to donate 500 billion won ($462 million) to charity.
Joining the gathering were Huh Chang-soo, chairman of the FKI; Sohn Kyung-shik, chairman of the Korea Chamber of Commerce and Industries; Koo Bon-moo, chairman of LG Group; and Chey Tae-won, chairman of SK Group.
It was the seventh meeting between Lee and business leaders after he was sworn in as president in February 2008.
Lee’s remarks come weeks after he proposed ecosystemic growth, calling for ethical capitalism benefitting all community members as a slogan for the nation in a speech on the Aug. 15 Liberation Day.
Under the slogan, he emphasized businesses’ social responsibility to ease the fallout of the unbridled free market economy such as a widening income gap and growth without job creation.